Bitcoin's Plunge Sparks $72K-$74K Worst-Case Scenario

Bitcoin's recent price decline has sparked concerns among investors, with some analysts predicting a potential drop to the $72,000-$74,000 range in a worst-case scenario. Markus Thielen, the founder of 10x Research, shared this outlook in a report to clients, highlighting the lag in correlation between Bitcoin and the global central bank liquidity indicator.

Thielen's analysis focused on the actual price paid by short-term holders, defined as addresses holding the token for less than 155 days. He identified the key level of $82,000, indicating a potential demand zone around this price point, which has already been reached. Historically, Bitcoin has rarely stayed below this level for an extended period during bull markets, while in bear markets, it often remains below this level for a longer duration.

Bitcoin's price has been volatile in recent days, setting a new 3-day lowest price since the FTX crash. This decline has raised questions about the cryptocurrency's future trajectory and the potential impact on the broader market. As investors and analysts continue to monitor the situation, the possibility of a rebound remains a topic of discussion.